
China’s crypto cleanup has already started: At least 5 exchanges are closing shop
- China recently announced another crypto crackdown, mostly targeting businesses that provide crypto-related services, such as exchanges.
- The crackdown has had numerous consequences, from Bitcoin price's last week's nosedive, to exchanges closing shop.
- Some of the most popular services announced their migration overseas, or decisions not to serve Chinese traders.
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After praising blockchain technology for weeks, China suddenly reminded the world that it still does not have such a high opinion of cryptocurrencies. In fact, just as the country’s investors started thinking that crypto trading might be back, China started another crypto crackdown. Now, the crackdown started claiming some of
its first victims, among which are at least five local crypto exchanges. The
exchanges announced that they would shut down after China’s regulators issued
numerous notices and warnings. Even China’s social network service, Weibo, suspended the accounts opened by Binance and TRON. The new cleanup is getting stronger, and it represents the largest crypto crackdown since September 2017, when China originally started banning crypto trading and businesses.Bitcoin and exchanges reacting to
the news
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China’s crypto scene still survived in 2017, however, despite the ban on crypto trading. While owning cryptocurrencies was not illegal, many started accessing OTC platforms that work with crypto assets. Unfortunately, even services and platforms like these are now closing shop due to the regulators.
Bitcoin reacted rather strongly to the news, sinking by $1,000 after the original announcement from last week. The coin thus reached the lowest value it has had in the past six months, going down to $7,000. The coin saw a 6% recovery yesterday, November 27th, but it still sits rather low.
The announcement of a new crypto crackdown did not waste much time when it comes to closing down exchanges. Multiple operators have halted their operations and announced service termination almost immediately afterward. This includes the likes of Akdex, Bitsoda, Btuex, Idax, and many others. Some of the exchanges have decided to continue working, although they will either not be accessible to China’s traders, or they plan to move overseas like Binance once did.
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